The U.S. Securities and Exchange Commission is expected to make a key decision on approval ether ETFs next week.
But Rick Edelman, chairman of the Financial Professionals Digital Assets Council, said the plan could fail due to the lack of an overall regulatory framework for all cryptocurrencies.
“I think there’s going to be another delay, which, frankly, is not bad news,” Edelman told CNBC’s “ETF Edge” this week.
Edelman, an investor and personal finance author, believes there needs to be an emphasis on regulation to protect people from cryptocurrency scams. He pointed out that the current law is more than half a century old and was not designed for digital technology.
“Without any police presence, it forces investors to act on their own outside the investment advisory community because the community cannot help them because we don’t know what the rules are. They end up falling into scams and fraud,” he said. “The sad irony is that (SEC Chairman Gary) Gensler claims to want to protect consumers. But his refusal to enact regulations is actually hurting consumers rather than helping them.”
Matt Hougan of Bitwise Asset Management is also pushing for new rules.
“Eighty-year-old securities laws are incompatible with the world of digital assets, cryptocurrencies and 21st century technology,” said the company’s chief investment officer. “Ultimately, I think everyone wants the same thing. They want a security A reliable platform where investors are protected and innovation is protected.”
Hougan pointed out that Bitwise has its own Ethereum spot ETF application and is full of hope for the future.
“We’ve entered the era of cryptocurrency ETFs. We’ve seen Bitcoin ETF listing. We see the great things they do for investors – reducing costs, improving regulation, increasing safety and peace of mind.
Two ethereum ETF proposals submitted by VanEck and ARK Investments/21Shares are expected to be approved or rejected this month.
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